The IFRS Foundation's SME Implementation Group, which assists the IASB in supporting the implementation of the IFRS for SMEs, published on 24 February 2011 a draft Q&A for public comment.

The Q&A addresses whether the parent entity can present its separate financial statements in accordance with the IFRS for SMEs if the group is required to present consolidated financial statements in accordance with full IFRSs.

According to the draft Q&A, a parent entity may present its separate financial statements in accordance with the IFRS for SMEs if it itself does not have public accountability.

EFRAG agrees with the conclusion of the draft Q&A to the extent drafted, but considers the draft Q&A to be incomplete. In order to answer the question included in the draft Q&A, EFRAG thinks the Q&A also needs to address whether an entity can choose only to prepare separate financial statements in accordance with the IFRS for SMEs, and claim these to be in accordance with the standard when the consolidated statements have not been prepared in accordance with the IFRS for SMEs.

Press release